After nine hours of talks with the union, and under considerable pressure from the Brazilian government, GM backed off from job cuts at its São José dos Campos factory near São Paulo. The politically sensitive decision (in Brazil and at home) to eliminate as many as 1,840 jobs was delayed until November.
GM wanted to close down one out of eight assembly lines at the complex. That wasn’t popuar with the unions, they went on strike. It also did not sit well with the Brazilian government. The government had given tax cuts and made imports more expensive, both to prop up domestic production. And now this.
“We give fiscal incentives and we want something in return: stable employment,” President Dilma Rousseff told Reuters. Reuters also explains what will happen to the jobs:
“Of the workers at risk of losing their jobs, GM will keep 900 on the assembly line, the company said. The rest will continue receiving their salaries as they undergo training for other jobs. “